With security issues on the Red Sea, major shippers are rerouting around the southern tip of Africa. NDSU Extension Crops Economist Frayne Olson is watching freight rates shoot higher. Shipping delays are happening. “A lot of the buyers are just-in-time delivery people,” said Olson. “They don’t want to pay for a lot of high inventory costs so they count on a very reliable supply chain to to deliver their product on time and at a reasonable price.” A common route for container ships is through the Mediterranean Sea and Suez Canal to China. That has changed for the short term with the conflict on the Red Sea. Olson says that creates opportunities for shipments out of the Pacific Northwest. Olson was part of the program Wednesday at the Lake Region Extension Roundup.
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